The second half of our long USD/JPY trade was stopped out at breakeven today after we booked partial profits just below the 104.00 figure last week. Prices have now cleared support at 103.25, the March 10 close, with sellers aiming for a horizontal pivot at 102.62 from here. This barrier is reinforced by the top of a recently broken Triangle pattern, now at 102.40. Alternatively, a reversal back above 103.25 targets the 38.2% Fibonacci expansion at 104.14.

Current positioning seems to suggest the current pullback is corrective in the context of a larger break higher from the Triangle pattern. Re-entering long seems premature without a clearly defined upward reversal signal however and we will stand aside for the time being.